In principle, gifting something automatically erodes its value by 10 to 30 percent. But when asked how much they'd be willing to pay for the gift, people want more money now. This is classic behavioral economics at play. Once we own something, we tend to overvalue it. There's a different sort of happiness associated with receiving a gift. So while giving gifts might be economically stupid, sentimentally, it may be the best thing in the world.
In today’s episode for 22nd December 2022, we dive into the economics of giving and receiving gifts.
Also, a quick sidenote, we're currently hiring performance marketing managers & influencer marketers for our team at Ditto. If you're interested or know someone who'd love to join us, please click this link.